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Labor Department Fiduciary Rule Rewrite Draws Lawsuit in Texas

Feb. 2, 2022, 9:13 PM

The Labor Department’s 2020 fiduciary exemption is an impermissible attempt to rewrite and expand the definition of ERISA fiduciaries in violation of federal law, a group representing insurance and annuity distributors said in a federal lawsuit filed Wednesday in Dallas.

The lawsuit, filed by the Federation of Americans for Consumer Choice Inc., challenges Trump-era regulatory guidance on when an investment adviser will qualify as a fiduciary subject to the statutory obligations of the Employee Retirement Income Security Act. The Federation says this rule, issued after the U.S. Court of Appeals for the Fifth Circuit vacated a tougher, Obama-era rule, suffers ...